MONTREAL -- TelePlus Enterprises, Inc. (OTCBB:TLPE) (http://www.teleplus.ca), a vertically integrated provider of wireless and landline communications products and services across North America, is pleased to announce today that it has signed a Definitive Agreement (SPA) for the acquisition of 100% of the shares of Canada Reconnect, Canada's largest reseller of landline, long distance and Internet prepaid services.

Following the closing of the transaction, Canada Reconnect will be rolled into TelePlus Connect Corp. ("TelePlus Connect") thereby bringing TelePlus Connect's annual revenues to $7.9M and earnings (before taxes) to $1.3M servicing over 9,500 users.

STRATEGIC ACQUISITIONS PUTTING TELEPLUS AHEAD OF SCHEDULE

In the last 3 months, TelePlus has announced 3 strategic acquisitions designed to leap frog its business plan by 18 months. Freedom, Telizon and Canada Reconnect are expected to increase the Company's run rate by $20M and contribute in excess of $3M to earnings (before taxes). TelePlus closed its acquisition of Freedom on April 1st, 2005. The Company intends to close its acquisition of Canada Reconnect by July 1st, 2005 and intends to close its acquisition of Telizon, subject to obtaining financing, within 150 days. Upon closing, these transactions will be accretive to the Company's earnings per share.

Canada Reconnect currently provides local, long distance and Internet prepaid services to over 6,000 residential users across Canada. The transaction calls for TelePlus to pay a combination of cash and stock valued at $3.0M to the shareholders of Canada Reconnect in exchange for 100% of Canada Reconnect's shares.

"We are delighted to have signed a definitive agreement with Canada Reconnect," stated TelePlus CEO Marius Silvasan. "The acquisition of Canada Reconnect falls right in line with our business model and fits perfectly within TelePlus Connect's strategy. The acquisition of Canada Reconnect, once completed, will increase our revenue run rate to $23M and immediately contribute over $1.0M to our earnings (before taxes)," added Silvasan.

Teleplus Enterprises Inc.